Saturday, June 26, 2010

Yes, that is how markets work.

On the "Trade-at" regulations being proposed:

Institutional investors using dark pools to avoid market impact could also suffer, brokers argued. That's because the operator of the pool would be forced to sweep the public markets to keep the trade in-house, UBS told the SEC. The sweep could act as a signal there was large buying or selling interest, UBS said. That could impact the price of the stock, negating the benefits of the dark pool.


Yes, that is how efficient markets usually work in economics.

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